Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
January 4/16: After eight years of negotiations, Algeria seems to have formally ordered Su-34 fighters from Russia. The procurement is said to be for about twelve of the aircraft’s export variant, the Su-32, to replace the aging MiG-25s in service. The announcement was made in an interview with director of Novosibirsk Aircraft Production Association, Chkalov Sergey Smirnov.
A February 2006 report noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
Reuters South Africa quoted Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
2015 – 2016
2010 – 2014
2006 – 2009
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
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